While the tech stocks have been hit hard recently, financial stocks have been strong. This weekly chart of GS shows that it had what appears to be a high volume cup and handle break-out last week. If the market reacts well to the new tax law, GS could really move up. Note that GS is approaching its green line historic peak of 250.70 reached in 2007.
The GMI remains at 6 (of 6) but the more sensitive GMI-2, which tracks nonfinancial tech stocks, is weaker, at 4 (of 8). I am tempted to jump on some of the stronger financial stocks but fear a major negative political event might take this market down. I am a chicken and always have one foot out the door. However, we could see end of quarter strength in the old leaders at the end of the month.
